President William Ruto o Thursday reaffirmed the government’s commitment to utilizing Public-Private Partnerships (PPPs) as a key strategy to finance Kenya’s national development agenda.
Speaking during the groundbreaking ceremony for the 35MW Orpower 22 Geothermal Power Plant in Menengai, Nakuru County, the President emphasized that PPPs help avoid increasing taxes and loans that could burden Kenyans.
“The partnership between the public and private sector provides a win-win outcome for delivering public services with the efficiency and investment of the private sector,” Ruto stated, highlighting the success of previous PPP projects, including the Standard Gauge Railway.
The President underscored the significance of the KSh12 billion investment by the Kaishan Group, which reflects the growing confidence of foreign investors in Kenya’s economic landscape.
During the ceremony, he also witnessed the signing of a Memorandum of Understanding (MoU) between the Kenya Electricity Generating Company (KenGen) and Kaishan Group aimed at sustainable green ammonia production.
This collaboration will enable Kenya to manufacture ammonia fertilizer domestically within 24 months, reducing reliance on imports.
“Progressively, we will reduce fertilizer imports into Kenya,” he affirmed, as he reiterated the government’s collaboration with the private sector to tap into the country’s geothermal potential.
Ruto announced that the 105MW Menengai project will position Kenya as the fifth-largest producer of geothermal energy globally, illustrating the synergy between economic growth and clean energy development.
“This project highlights our commitment to unlocking Kenya’s vast geothermal potential to drive economic growth,” he said, urging private investors to explore geothermal energy further, given that only 10% of the country’s geothermal resources have been developed thus far.
With an estimated geothermal potential of nearly 10,000MW, Ruto noted that Kenya has so far harnessed only 950MW, leaving significant opportunities for future exploration.
He emphasized the government’s strategy to provide universal access to clean, affordable, and reliable energy, with geothermal power being central to these efforts.
“Our strategy to provide universal access to clean, affordable, and reliable energy is clearly on course,” Ruto stated, asserting that geothermal energy will be pivotal in decarbonizing the national grid and achieving net-zero emissions.
Energy Cabinet Secretary Opiyo Wandayi highlighted the potential of the new power plant to attract investors seeking clean and affordable energy.
“As a ministry, we are committed to enhancing our national grid,” he said.
Nakuru Governor Susan Kihika also expressed her administration’s dedication to fostering a conducive environment for private investment, furthering the goal of sustainable energy development in the region.
